TOKYO, Sept 14 (Reuters) - Japanese stocks fell on
Wednesday, tracking overnight Wall Street losses after U.S.
inflation data showed an unexpected rise in consumer prices last
The Nikkei share average fell 2.95% to 27,795.64
shortly after markets opened, slipping below the key
psychological 28,000 level, before recovering slightly to
27,991.82 at the break, down 2.18% for the day.
The broader Topix index was down 1.62%.
Technology stocks led the losses on the Nikkei, with the
sector down 2.15% overall after a selloff in the U.S. saw the
Philadelphia semiconductor index slide 6.18%.
SoftBank Group Corp fell 3.80%, and chipmaking
equipment manufacturer Tokyo Electron slipped 3.05%.
"The selloff of high-priced tech stocks in Japan seems to be
connected [to the overnight U.S. losses]," a market participant
at a domestic financial institution said.
Investors had been awaiting the overnight release of U.S.
Consumer Price Index (CPI) data for clues, as to how hawkish the
Federal Reserve will be in its efforts to cool inflation.
The report showed CPI edged up 0.1% last month despite
consensus expectations for a decrease, sending Wall Street to
its biggest loss in two years.
Markets are now fully pricing in a third successive rate
hike of at least 75 basis points at the Fed's next meeting and
see a 38% probability of a highly aggressive 100 bps.
Of the Nikkei's 225 constituents, 205 declined, 18 advanced,
and two traded flat.
Some travel-related companies saw gains amid broader
expectations that Japan will further ease COVID-19 visa
restrictions for tourists.
Department store giant Takashimaya Co Ltd rose
0.89%, while peer Isetan Mitsukoshi Holdings Ltd was
flat after making early gains.
"Stocks that benefit from the loosening of coronavirus
restrictions will probably continue to be stable," said a
domestic asset manager.
(Reporting by Sam Byford and Tokyo markets team; Editing by